Planit:Cash Flow Management
The Cash Flow Management screen is where you’ll identify the income and family expenses for the clients. This is important information for further analysis. This helps to determine the resources available to achieve personal goals and objectives.
First we will look at how you would enter in summary level cash flow.
Please Note: Previous versions you entered in savings onto this screen, this has been moved to the Assets and Liabilities screen.
You are simply going to enter in the Personal Income and Investment Income the clients may be currently have. You would then hit calculate.
- Taxes Paid – The tax rates are calculated from the income and savings values.
- Savings identified here will be used in all projections.
- The jurisdiction you set on the Personal Information screen determines the tax rates used here.
- When you are satisfied with the cash flow information entered, click on the “Next” icon to proceed.
- You also have access to a Income Tax Projection report.
TIP: The Family Expenses number is calculated based on the reality that there are only three things that people can do with their money, 1) Save it 2) Pay it in Taxes or 3) Spend It. Thus the family expenses are calculated by taking total income minus taxes, minus savings.
Detailed Cash Flow
From the summary Cash Flow screen a new button will launch a detailed cash flow window to support comprehensive cash flow management.
You would simply go through the list of items expanding each Cash Flow Category down by using the + sign and enter in the Cash Flow details for your clients.
Please Note: When you complete the detailed cash flow information, a matching cash flow schedule will be included in the Personal Financial Strategy document you prepare for your clients.
- The detailed cash flow also allows you to identify more elaborate tax deductions to illustrate in the Tax Projection Report.
- You may want to view our FAQ on entering detailed cash flow. This FAQ will describe in more detail of the different cash flow treatments like for example, a working client vs a retired client. It will also provide you with a more detailed view of the tax analysis the cash flow uses. Detailed Cash Flow